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October 1, 2015

Group Home Marketing Strategies

Updated on 1/28/2017

Group homes have become one of the fastest growing businesses
within the human services field. More
states are moving to community-based services and downsizing large
institutions. This transition has created an increase in demand for group homes
that allow residents to live in regular neighborhoods and become a part of
their community. This change in treatment focus has made the group home
business extremely competitive. Established agencies are getting competition
from new providers looking to profit from the much sought out Medicaid
dollar. Why wouldn’t they cash in? Group
homes can make anywhere from $80,000 - $90,000 a year per resident. This
doesn’t even include rent that is also paid to the group home agency from SSI
benefits. Residential services are one of the most important services case
managers have to coordinate. Extreme care should be taken when helping clients
find the right home. You would do the same if you were looking for a home for
your family. The same care should be taken for your clients. I have listed a
few things that families look for in a group home and how you can create a
great home experience for your clients.

Location- Location
is an important factor when thinking about opening a group home for several
reasons. Choosing the right city, neighborhood, and area is critical in
attracting clientele and creating the most appropriate environment. Research the
cities that would work best for your agency. In my experience, most group homes
tend to be in the same city as the central office. This allows for a quick
response in the case of a medical or behavioral emergency. Once established,
agencies can expand to multiple cities.

You may want to choose a location that is away from busy
streets for safety purposes. Many clients tend to wander and a busy street may
pose a hazard.

Funding- Funding sources
also play a key role in determining where you decide to set up a group home.
Most homes that serve the intellectually disabled are funded through Medicaid Waiver. Each state administers the Waiver system differently. Based
on my experience, larger cities tend to receive more waiver “slots” or individual funding
allocations for clients. Larger cities often tend to have more people on the
wait list for services and are more likely to receive a larger allocation of
waiver slots.

Timing is also important
when considering the funding source. States usually allocate wavier funding
every fiscal year, which begins on July 1st and ends on June 30th each year. The end of July and the beginning of August is one of the
best times to conduct open houses and grand openings for new group homes.

Accessibility-Accessibility
is also a key aspect when looking to start a group home. The ideal home would
have bedrooms downstairs and upstairs to accommodate clients who are less mobile. Wheelchair ramps and handicap friendly bathrooms are also good selling points. Wheelchair access is important and ranch style homes seem to do well for group homes since everything is on the first floor. This style of home is ideal for residents with mobility issues.

Privacy- Privacy
is also important. Shared bedrooms are a mistake in my opinion. I’ve seen
providers do this to make more money. However, adults need privacy and it can
cause some liability issues. Honestly, shared bedrooms are pretty much a "no" in my book. I feel if you're going to pay $600-$700 (or more in some cases) in rent, you should at least have your own room.

Community Activity- Group
homes should be providing more than just a roof and a place to sleep. Residents
should be involved in community activities and receive training to become more
independent. Some case managers have done home visits between 4:30pm and 5:00pm
and witnessed residents preparing for bed. Residents are required to have some
skill building activities.

Develop Connections- Developing
professional connections is important when starting any business. This is
especially true when working in the human services field. Word of mouth
referrals from case managers and other human services professionals account for
most group home placements. Most Waiver programs require a case manager to be
involved in the coordination of services so it’s important to establish good
professional relationships with local Community Services Boards and Human
Services Departments.

Create a Website- Just
about everyone has access to the internet. Websites provide a great opportunity
to market your agency. Case managers can provide this information to families
and they can research the agencies for themselves. The website also provides an opportunity for a virtual tour
before the face to face site visit. The virtual tour is also a useful tool for
case managers who are often too busy to tour every new group home when it
opens.

Use Social Media- Social
is another free method to market your program. Facebook and Twitter are probably
the best platforms to market and provide information about the services that
you can provide.

Local Agencies- The
last but not the least is the old fashion phone call or providing information to
local agencies. Some public agencies designate an area for provider information
and this can be distributed to potential clients and families. This is the
perfect place to leave your company business cards, brochures, and pens, etc.